Government drives UK freight and logistics sector via new funding

Technologies like aerodynamic trailers to be tested in real-world environments.

The Department for Transport (DfT) in the UK is funding another set of projects designed to innovate the freight and logistics industry.

In the latest round of the government’s Freight Innovation Fund (FIF), new technologies to be tested in real-world environments include lightweight aerodynamic trailers, electric trailers that can be used with bikes, and sensors that seek to mitigate musculoskeletal disorder injury risks amongst freight staff.

“We know how crucial the freight industry is to keep Britain moving, and how important it is that transport is equipped to face modern-day challenges,” said Aviation, Maritime, and Decarbonisation Minister Keir Mather.

“Our funding will allow businesses to start trialling their revolutionary technology on our roads, ports, and railways, meaning they can make an immediate difference and help grow the economy.”

Launched in 2023, the FIF is funded by the DfT and delivered by Connected Places Catapult. For the new batch of winning projects, nine small- and medium-sized businesses were chosen to each receive up to $173,188 (£130,000).

“The freight sector has enormous potential for innovation, and that innovation drives economic growth,” noted Connected Places Catapult’s Managing Director for Transport Sameer Savani.

“Since it began in 2023, the Freight Innovation Fund Accelerator has provided expert support and £3.9m of funding to 29 companies, with 27 of those conducting real-world technology trials.

“The companies supported have so far gone on to secure over £100m of investment and create 44 jobs. I’m excited to see this fourth cohort of high-potential businesses working with the sector’s heavy-hitters to trial new ideas to improve freight.”

Meanwhile, through the Transport Research and Innovation Grants, additional funding will be provided for transport and freight. Successful projects then get a chance to proceed further and be an FIF recipient.